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BofA on why Nike may only have to increase prices 2% due to tariffs

Posted on 4/28/25 at 7:46 am
Posted by stout
Porte du Lafitte
Member since Sep 2006
175449 posts
Posted on 4/28/25 at 7:46 am
quote:

Nike’s supply chain is diversified, with Vietnam, Indonesia & China accounting for 50%, 27% & 18%.

Chinese production serves the local market, with limited exposure to U.S. tariffs.

If current tariffs remain in place, Nike’s blended rate would be 16.75%, resulting in a 1.1% margin impact. Nike could raise prices globally by a very manageable 2% to fully offset the pressure.



BofA on Nike: Tariffs manageable, China risk priced in
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
86874 posts
Posted on 4/28/25 at 7:49 am to
So an extra $2 and not the extra $18 that seldom seen melted down about

And I assume thats a 1 time hike not inflationary. So basicaly a consumption tax like Lutnik said

Cut the rates Jerome
Posted by UltimaParadox
North Carolina
Member since Nov 2008
47215 posts
Posted on 4/28/25 at 8:16 am to
Dont think it will help Nike's stock much as they have been getting killed on margins for a long while now.

Competition has been eating them alive, margins have shrunk from 40% to barely over 10% over the last few years, this just compounds it further.

Dont see much upside here
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
144344 posts
Posted on 4/28/25 at 9:16 am to
quote:

BofA on why Nike may only have to increase prices 2% due to tariffs
BofA must be a shite sandwich bag holder like me for them to release that statement.

I’m in at $67. Broke one of my golden rules of purchasing stonk that I refuse to buy their product.
Posted by The Torch
DFW The Dub
Member since Aug 2014
23315 posts
Posted on 4/28/25 at 11:15 am to
So the teenage sized Jordans will be $185.00 not $157.00 ?

They've been ripping us off for years
Posted by Tmcgin
BATON ROUGE
Member since Jun 2010
5895 posts
Posted on 4/28/25 at 1:02 pm to
Nikes volume is 60% non domestic to the US
When they were founded they had a shoe factory in Massachusetts
but it was environmental regs that closed it
Posted by SaintsReportExile
Member since Nov 2023
517 posts
Posted on 4/29/25 at 5:12 pm to
Plus it doesn't help that Nike is always there to support any dude that thinks he is a chick.
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